In today’s world, homeownership seems like an increasingly unattainable dream for many families, especially with the ever-increasing cost of living. However, there are a few tips that homeowners can employ to make owning a home or buying a home more affordable than before. Here are a few tips on how to make your home more affordable.
Performing Eco-Friendly Renovations
One way to make owning a home more affordable is through eco-friendly renovations. These can include replacing old appliances with energy-efficient appliances, using reclaimed materials while building the home, or adding solar panels. Even though these may cost more upfront, these changes can save a homeowner money in the long term. These renovations can lower energy bills and tend to last longer than less eco-friendly materials in the home.
Repair Leaking Pipes
Leaking pipes are an example of a tiny problem that can lead to a huge expense. Homeowners may be tempted to ignore this problem, especially if they can’t see any damage, but long-term damage caused by leaking pipes can compromise the safety of the home and lead to huge expenses. Replacing any old or broken pipes can help save money and reduce the risk of a huge repair bill in the future.
Downsize on Any Large Expenses
If you are still saving to buy a house, something you can do to make homeownership more affordable is to cut down on any other large expenses in your life. This can mean reducing the size of an upcoming wedding, putting off a planned vacation until next year, or waiting to buy a new car. By cutting down on other unnecessary expenses, homeowners can put that money towards their house, making purchasing a home less of a financial strain.
Avoid Adjustable-Rate Mortgages
Adjustable-rate mortgages may seem like a great idea, especially if a homeowner can get a low interest rate initially. However, this can lead to enormous expenses later on, as interest rates increase. Homeowners may find themselves paying almost double the initial interest rate on their home, which can make a mortgage bill unaffordable. Homeowners should opt for a fixed-rate mortgage, even if it seems more expensive at first.
Buy the Right-Sized Home
One of the biggest mistakes that homeowners can make is buying a home that is too big for their needs. This can make owning a home unaffordable for several reasons:
- The down payment on the home and the monthly payments that follow can be out of a buyer’s financial reach.
- The cost to heat and provide lighting to such a large home may make an already expensive home even more unaffordable.
- The cost to maintain and repair such a large home can be much more expensive than a modest home.
Even though buying home is usually the most expensive purchase that anyone will make in their lifetime, owning a home is not completely unaffordable. After the initial savings process is over, most homeowners can still continue to make small changes in their lives that will prevent their mortgage and maintenance costs from becoming a huge financial burden.
February 23, 2017